Bybit Exploit Fallout: Hacker Becomes 14th-Largest Ether Holder Globally

Bybit Hacker Holds Massive ETH Stash, Tightening Ether’s Supply

Ether has climbed 2% as traders view the hacked ETH as effectively removed from circulation, reducing the available supply.

The hacker behind the Bybit exploit, believed to be linked to a North Korean entity, has now emerged as one of the largest individual holders of ether—a situation that could have long-term implications for the asset’s price.

According to data from Arkham Intelligence and Coinbase executive Connor Grogan, the attacker controls approximately 489,000 ETH, valued at around $1.34 billion. This represents roughly 0.4% of ether’s total supply, making the hacker the 14th-largest ETH holder worldwide, surpassing the Ethereum Foundation, Ethereum co-founder Vitalik Buterin, and financial giant Fidelity.

Despite the vast holdings, liquidating such a massive amount of ETH remains highly unlikely. The associated wallet addresses have been blacklisted by major exchanges, making it nearly impossible for the hacker to sell the funds through traditional channels.

With this large chunk of ether effectively locked away, Bybit may need to purchase additional ETH to replenish its reserves. Reports indicate that the exchange has secured a bridge loan covering nearly 80% of the stolen funds, but additional buying pressure could still emerge.

“As far as this supply is concerned, it’s essentially gone. No OTC desk or exchange will facilitate the movement of such a large amount. Meanwhile, Bybit is short 402k ETH. The bridge loan may cover immediate needs, but purchasing will still be necessary,” said Vance Spencer, co-founder of crypto VC firm Framework Ventures, in a post on X.

This potential supply squeeze could be contributing to ether’s recent recovery, with the cryptocurrency rising 2.6% to $2,730 from an overnight low of $2,614. Funding rates on perpetual futures remain positive, signaling that traders continue to favor long positions, according to Coingecko.